Goldsource Mines To Conduct $8.0 Million Bought Deal, Consolidate Shares

Goldsource Mines (TSXV: GXS) last night announced that it will be conducting an $8.0 million bought deal financing through that of Cormark Securities and Sprott Capital Partners. The company concurrently announced that it also intends to conduct a share consolidation following the close of the financing.

The bought deal arrangement will see a total of 72.7 million units of the company sold at a price of $0.11 per unit. Each unit is to contain one common share and one half of a common share purchase warrant, with each warrant price at $0.14 and valid for a period of two years from the date of closing.

An over allotment option has also been granted to the underwriters, enabling the financing to be expanded by up to $10.9 million units, which would increase the financing to a total figure of $9.2 million if exercised in full.

Proceeds from the offering are to be used for pre-feasibility work as well as ongoing exploration at the firms Eagle Mountain Gold Project, location in Guyana. Funds are also to be used for working capital and general corporate purposes.

The company has also indicated that it intends to complete a share consolidation on a post-financing basis. The company currently intends to conduct a consolidation at a rate of one post consolidation share for every ten pre-consolidation shares held. Shareholder approval is not required for the consolidation to occur. Excluding the current financing, the company is expected to have a total of 40.7 million shares outstanding on a post-consolidation basis.

Goldsource Mines last traded at $0.115 on the TSX Venture.

Information for this briefing was found via Sedar and Goldsource Mines. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.